Cacao prices tumble to five-month low as the trade war intensifies
Cacao prices tumbled on Tuesday and expanded their losses amid a heavy selloff that hit most assets around the world with the trade war intensifying.
Analysts are concerned about a global economic recession due to the trade wars, which impact agricultural demand on cacao among other crops.
The US imposed gigantic 104% tariffs on Chinese products starting Wednesday as a punishment to China’s punitive tariffs on US products.
China’s government vowed to fight till the end and called out the “blackmailing nature” of the US.
On trading, cacao futures tumbled 3.5% in London to 5764 pound per ton, a November 13 low.
Cacao futures in New York fell 3% to $7823 a ton.
Arabica coffee futures dipped 0.2% to $.441 a pound, while Robusta coffee rose 0.6% to $4825 a ton.
Gold claws its way back above $3000
Gold prices rose on Tuesday on strong haven demand while some assets rebounded somewhat after massive losses in the last three sessions, as the dollar lost ground.
The US imposed gigantic 104% tariffs on Chinese products starting Wednesday as a punishment to China’s punitive tariffs on US products.
China’s government vowed to fight till the end and called out the “blackmailing nature” of the US.
Otherwise, US stock indices rebounded temporarily before bouncing back down and extending their heavy losses today as prospects of trade deals diminished.
Otherwise, the dollar index fell 0.3% as of 18:38 GMT to 102.9, with a session-high at 103.4, and a low at 102.7.
On trading, gold spot prices rose 1% as of 18:43 GMT to $3002 an ounce.
Wall Street rebounds, Dow Jones surges 1000 points
US stock indices rose on Tuesday as they try to recoup recent heavy losses due to the erupting global trade war.
The positive sentiment in the markets came after US President Donald Trump’s statements that nearly 70 countries contacted the US administration to negotiate tariffs.
Trump said the negotiations might lead to some good deals if these countries provided suitable offers to America.
On China, Trump said Beijing wants to reach a deal with the US, but the Chinese government hasn’t contacted him yet.
On trading, Dow Jones rallied 2.6% as of 15:43 GMT, or 992 points to 38,956 points, while S&P 500 surged 2.6%, or 134 points to 5196 points, as NASDAQ added 2.9%, or 458 points to 16,060 points.
